Minimum Wages Rise Faster Than Inflation in Europe
Jan 31, 2025

Minimum Wages Rise Faster Than Inflation in Europe

The latest analysis by Euronews Business reveals that minimum wages have increased at a pace surpassing inflation across much of Europe, resulting in real wage growth throughout the region. Supported by data from IndexBox, this trend highlights significant shifts in living standards for minimum wage earners.

As per the data, monthly gross minimum wages as of January 2025 vary widely, staying below EUR1,000 in ten of the 22 EU countries surveyed, and dropping even lower in candidate countries such as Moldova, where it stands at EUR285. Luxembourg claims the highest minimum wage in the EU at EUR2,638, significantly outpacing Bulgaria, which offers the lowest at EUR551.

When adjusted for Purchasing Power Standards (PPS), the disparities between nations are reduced but still notable. For instance, Germany's PPS-adjusted minimum wage exceeds that of Bulgaria by more than double. While nominal wages show Luxembourg on top, PPS adjustments reveal Germany as leading, followed by Estonia at the lower end.

In deeper analysis, different categories emerge: Group 1 countries with minimum wages exceeding EUR1,500, such as Luxembourg and Germany; Group 2, including nations like Spain and Poland with wages between EUR1,000 and EUR1,500; and Group 3, where the majority, like Croatia and Greece, fall below EUR1,000.

Real wage growth, an even more critical indicator, showed remarkable improvement in countries like Montenegro, Romania, and Bulgaria, as these nations outpaced inflation with significant wage hikes. Montenegro's minimum wage, in particular, saw a 25.9% rise in nominal terms against an inflation rate of 2.6%, leading to a substantial improvement in purchasing power.

This upward trend corresponds with the EU's new Minimum Wage Directive, which aims to peg minimum wages at 60% of the gross median wage, thereby assuring a satisfactory living standard for workers. This directive has evidently started influencing national wage policies, encouraging substantial wage adjustments across diverse economic landscapes.

Source: IndexBox Market Intelligence Platform

  1. 1. INTRODUCTION

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    1. REPORT DESCRIPTION
    2. RESEARCH METHODOLOGY AND AI PLATFORM
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    4. GLOSSARY AND SPECIFIC TERMS
  2. 2. EXECUTIVE SUMMARY

    A Quick Overview of Market Performance

    1. KEY FINDINGS
    2. MARKET TRENDS This Chapter is Available Only for the Professional Edition PRO
  3. 3. MARKET OVERVIEW

    Understanding the Current State of The Market and Its Prospects

    1. MARKET SIZE
    2. CONSUMPTION BY COUNTRY
    3. MARKET FORECAST TO 2030
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    1. TOP PRODUCTS TO DIVERSIFY YOUR BUSINESS
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  5. 5. MOST PROMISING SUPPLYING COUNTRIES

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    1. EXPORTS FROM 2012–2024
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  10. 10. PROFILES OF MAJOR PRODUCERS

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    • United States
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  12. LIST OF TABLES

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    2. Market Volume, In Physical Terms, 2012–2024
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    4. Per Capita Consumption, By Country, 2018–2024
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    8. Import Prices, By Country Of Destination, 2012–2024
    9. Exports, In Physical Terms, By Country, 2012–2024
    10. Exports, In Value Terms, By Country, 2012–2024
    11. Export Prices, By Country Of Origin, 2012–2024
  13. LIST OF FIGURES

    1. Market Volume, In Physical Terms, 2012–2024
    2. Market Value, 2012–2024
    3. Consumption, By Country, 2024
    4. Market Volume Forecast to 2030
    5. Market Value Forecast to 2030
    6. Products: Market Size And Growth, By Type
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    9. Products: Export Prices And Growth, By Type
    10. Production Volume And Growth
    11. Exports And Growth
    12. Export Prices And Growth
    13. Market Size And Growth
    14. Per Capita Consumption
    15. Imports And Growth
    16. Import Prices
    17. Production, In Physical Terms, 2012–2024
    18. Production, In Value Terms, 2012–2024
    19. Production, By Country, 2024
    20. Production, In Physical Terms, By Country, 2012–2024
    21. Imports, In Physical Terms, 2012–2024
    22. Imports, In Value Terms, 2012–2024
    23. Imports, In Physical Terms, By Country, 2024
    24. Imports, In Physical Terms, By Country, 2012–2024
    25. Imports, In Value Terms, By Country, 2012–2024
    26. Import Prices, By Country, 2012–2024
    27. Exports, In Physical Terms, 2012–2024
    28. Exports, In Value Terms, 2012–2024
    29. Exports, In Physical Terms, By Country, 2024
    30. Exports, In Physical Terms, By Country, 2012–2024
    31. Exports, In Value Terms, By Country, 2012–2024
    32. Export Prices, 2012–2024

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